The rate of growth in the insurance sector is expected to come down during 2010-11, said J. Harinarayan, Chairman, Insurance Regulatory and Development Authority (IRDA) here on Thursday.
Speaking to media persons, he said that though the overall first year premium collection increased, the rate of growth had declined. This could have been due to regulations that came into force three months ago in the insurance industry and also the impact of global and national economic scenario on the sector, he felt.
The insurance industry registered 23 per cent growth in 2009-10.
ULIP
In Unit Linked Insurance Products too, the growth rate had come down though of late a slight upward trend was noticed. During the course of the year, things would stabilise, he said.
Guarantee
Asked about the industry feedback on the insurance regulations, Mr. Harinarayan said companies wanted to expand the scope of the products.
The IRDA insisted on minimum 4.5 per cent return on pension products. “We are particular that the ULIPs should have an element of guarantee,” Mr. Harinarayan added.
Replying to a question, he said there was a proposal to link the persistency ratio of insurance products to the agents' licence.
Persistency ratio would indicate the percentage of policies that continue to get regular premium payments and consumers' faith in the product.
On the much awaited initial public offering (IPO) guidelines for private insurance companies, Mr. Harinarayan said they were likely to be announced in February.
